NEW YORK, Aug 14 (V7N) — Amazon is shaking up the grocery delivery landscape by offering same-day delivery of perishable food items to its Prime subscribers in over 1,000 U.S. cities, including Phoenix, Raleigh, and Tampa — with plans to expand to 2,300 cities by year’s end.

This service, free for Prime members on orders over $25, enables customers to order items like strawberries, milk, meat, and frozen meals and receive them within hours. Non-Prime members will be charged $12.99 per order. The move eliminates the need for the additional $9.99 monthly Amazon Fresh fee, previously required for fast grocery delivery.

Amazon’s major $4 billion investment aims to extend same-day and next-day delivery to over 4,000 rural communities by the end of the year. The initiative is seen as a direct challenge to Walmart+, Instacart, and DoorDash, all of whom offer their own rapid delivery services. Walmart+, for instance, promises delivery in as little as 30 minutes for some orders.

Industry analysts say Amazon’s lowered minimum order threshold and zero added fees for Prime users will pressure competitors. Shares of Instacart (Maplebear) plunged 12.4%, while DoorDash, Kroger, and Walmart also saw losses. In contrast, Amazon’s stock rose 1.4% on Wednesday.

Analyst Blake Droesch of eMarketer said the move could significantly increase Amazon Prime memberships, while Zacks Investment Management's Brian Mulberry emphasized the importance of maintaining service quality to support long-term growth.

With this aggressive expansion, Amazon is betting on faster, cheaper delivery to dominate the online grocery market.

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